The Banking Market in Romania, 2018 - The Romanian Economy Has Decelerated During the First Three Quarters of 2018 - ResearchAndMarkets.com

November 29, 2018

DUBLIN--(BUSINESS WIRE)--Nov 29, 2018--The “Banking Market in Romania, 2018” report has been added to ResearchAndMarkets.com’s offering.

Banking Market in Romania 2018 is the latest publication on the banking sector in Romania. It is describing the present market structure and recent trends in the banking market. It also provides short-term estimates of key retail and corporate volumes for the years 2018-2020.

After a surge in GDP in 2017, the Romanian economy has decelerated during the first three quarters of 2018. Romania’s GDP is expected to slow down to ~4% in 2018 from over 7% recorded in 2017.

The key driver of the growth remains private consumption and fixed investments. Private consumption continues to be fuelled by lower taxes, surging wages, and falling unemployment. The labor market improved remains strong with unemployment rate persisting below 5%. The consumer price index (CPI) rebounded violently from a negative territory in 2016 to over 4% YoY in the first half of 2018.

The highly expansionary fiscal policy pursued by the government, including lowering of VAT and income tax has contributed to imbalances including the C/A deficit and the budget deficit, both widening to over 3% as of 2018.

Total banking assets in Romania increased by 9% YoY in 2017 and they also sustained fast growth in the first three quarters of 2018, hitting a record high of RON 445 billion as of September 2018. Client deposits at banks recorded a slightly slower rate of growth to nearly RON 368 billion with household deposits remaining strong.

By contrast, outstanding client loans grew faster than in the past and reached RON 257 billion as of Q3 2018. The faster pace of growth in outstanding loans has been accompanied by the falling ratio of non-performing loans.

The NPL ratio has more than halved since 2016 and reached 5.7% (EBA ratio) as of June 2018. The sector has also made further progress in containing currency-related risks as the share of outstanding loans denominated in foreign currency has been reduced substantially, in particular, in the case of corporate and mortgage loans.

Companies FeaturedAlpha BankBanca Comercial RomnBanca TransilvaniaBancpostBRD Groupe SGCEC BankCitibank Europe plcGaranti BankING Bank N.V.OTP BankRaiffeisen BankUniCredit Bank

Key Topics Covered

1. Macroeconomic OverviewBackground: country map, demographic & social statistics, 2017Consumer markets in Europe and Romania, 2016/2017GDP, CPI, Exchange rate, 2012-2018FConsumption expenditure of households, 2012-2017Wages and unemployment, 2012-2017Government budget and taxation, 2010-2018FForeign trade, current account and FDI, 2012-2017Stock market performance and capitalization, 2012-2018Market interest rates, 2012- Nov.2018Interest rates at banks and NPLs, 2012-2017 H1

2. Banking Market

CEE banking markets: growth vs. assets per capita, 2015-2017CEE benchmarks: Assets/capita, Assets/GDP penetration, 2017Banking assets evolution, in RON and EUR, up to 2018 Q3Market concentration, share of top banks, HHI index, 2015-2017TOP 12 banks in Romania by assets, market share, 2017

3. Market Segments

Total client deposits, evolution by segment, 2013-2018 Q3Household deposits, by currency and by maturity, 2013-2018 Q3Personal Financial Assets by type, 2016-2018H1Total client loans, evolution by segment, 2013-2018 Q3Household loans, evolution by currency and by type, 2013-2018 Q3Mortgage loans, evolution by currency, 2013-2018 Q3Corporate loans, evolution by currency and by type, 2013-2018 Q3Top players, retail banking, by deposits and by loans, 2017Top players, retail banking, by deposits and by loans, 2017Payments: # cards, ATMs, POS, card payments, 15Q4-18Q3

4. Profitability & Top Bank Profiles

Top 5 banks profitability tree, 2017, percent of average assets, cost income ratio, ROEBank profile: Banca Comercial RomnBank profile: Banca TransilvaniaBank profile: BRD-Groupe Socit Gnrale

5. Mid-term Forecasts

Forecast: Retail deposits and retail loans, 2018-2020Forecast: Corporate deposits and corporate loans, 2018-2020Forecast: Banking assets, 2018-2020

For more information about this report visit https://www.researchandmarkets.com/research/tnwqbb/the_banking?w=4

View source version on businesswire.com:https://www.businesswire.com/news/home/20181129005297/en/

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SOURCE: Research and Markets

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